Czech National Bank Governor Alex Michl told the Bitcoin 2026 conference in Las Vegas that Bitcoin might surge — or it could go to zero. “Its volatility is much higher than other assets,” he said on Tuesday. “One day its price may be much higher or it could go to zero. Yes, zero.”
First central bank to buy Bitcoin: a $1M test
The CNB became the world's first central bank to purchase Bitcoin back in November, creating a $1 million test portfolio that included BTC, a USD stablecoin, and a tokenized deposit. The pilot, approved by the CNB's bank board, was designed to gain hands-on experience with blockchain-based assets, which officials said could reshape future payment and financial systems.
A CNB study found that because Bitcoin has low long-term correlation with many traditional assets, “it does not move in the same direction.” Michl explained: “When you add an asset like this, the whole portfolio can work better. Return can go up and risk stays about the same.” Over the long term, “bitcoin can provide returns that are not closely linked to other assets. In some ways it is similar for me to venture capital but it is much more liquid.”
However, he stressed that despite Bitcoin's potential to drive higher returns with smaller allocations — even more so than gold — the “CNB's Bank Board decided not to invest its FX reserves in bitcoin at this time.” The board cited extreme volatility as the key reason.
The most expensive coffee
Michl recounted his first Bitcoin purchase: “I bought a coffee. Today that coffee comes to about $350, so it was the most expensive coffee of my life.” He used the example to illustrate Bitcoin's wild purchasing-power swings.
While acknowledging that Bitcoin has shown “very high returns” over time, Michl insisted: “Honestly it looks too risky.” He reminded the audience that all assets can lose value: “A stock can go to zero. Even a bond can fail. So for me that is why it is not wise to bet just on one asset.”